SGMT 3000 Lecture Notes - Lecture 6: Brand Loyalty, Cost Leadership, Franchising
9 May 2016
School
Department
Course
Professor
Document Summary
Chapter 6 business level strategy and the industry. Composed of a large number of small- and medium-sized companies. Focus strategy works best for a fragmented industry. Value innovator - defines value differently than established companies: offers the value at lowered cost through the creation of scale economies. Companies search for the business model and strategies that will allow them to consolidate a fragmented industry to obtain the above average profitability possible in a consolidate industry. In return for a fee and a percentage of the profits. Most embryonic industries emerge when a technological innovation creates a new product opportunity. Challenge because new groups of custoers with diff needs emerge. Industry enters the growth stage when a mass market starts to develop for its products: mass market: one in which large numbers of customers enter the market, occurs when: Product value increases, due to ongoing technological progress and development of complementary products.
